Posted on Wed, Jan. 26, 2005
FORT LAUDERDALE
Builders creating `urban village'
Developers have discovered the north side of Fort Lauderdale's downtown in a big way: Nearly two dozen multifamily residential projects with a combined construction cost of $700 million are in the works.
BY PATRICK DANNER
pdanner@herald.com
Downtown Fort Lauderdale's north end may well be the next hot residential area.
A wave of residential construction planned for the next few years may transform the neighborhood into what the city has long envisioned: an ''urban village'' downtown where people live, work and relax. Single-family homes and low-rise commercial buildings now dominate the landscape, but the new plans could bring high-rise condos to the area.
The interest from developers in downtown Fort Lauderdale's northern confines follows a residential development boom south of Broward Boulevard in recent years. But that section of downtown may have lost some of its development appeal because the city has no more units to allocate to multifamily residential developers.
Nearly two dozen multifamily residential projects -- with almost 3,500 units and a total estimated cost of more than $700 million -- are either under construction or on the drawing board north of Broward Boulevard. The projects include condominiums, lofts and town houses with a smattering of shops and offices.
What's happening in the so-called Flagler Village area is emblematic of the redevelopment trend sweeping the eastern corridor from Miami to West Palm Beach, said Michael Cannon, real estate analyst with Integra Realty Resources in Miami.
''We no longer have the suburban farmland to develop for our single-family subdivisions,'' Cannon said. ``The marketplace is rediscovering the urban core.''
Developers have shown such a significant interest that the proposed multifamily units exceed the development cap the city has set for the area. City leaders are scheduled to meet next month with Broward planning officials about increasing the units that can be built downtown.
30-STORY PROJECTS
And for the first time, major high-rise residential developments are planned for the area. In the works are three projects rising at least 30 stories, rivaling some of the tallest office and residential towers in the city's central business district.
Despite the flood of projects, developers say they aren't at risk of outpacing demand. The influx of new residents will easily absorb the added units, they say.
''There was this pent-up demand that wasn't being served,'' said Peter Feldman of New Phase Realty, which is targeting an August groundbreaking for its $39 million, 218-unit condominium project on Northeast Fifth Avenue.
There's no guarantee that all the projects will be built, and a sudden rise in interest rates could dampen excitement.
But the completion of the initial phases of such projects as developer Alan Hooper's Avenue Lofts at 425 N. Andrews Ave. and Downtown Lofts' NoLA Lofts at 313 NE Second St. has sparked additional interest, said Chris Wren, executive director of Fort Lauderdale's Downtown Development Authority.
''Now that you can see some of the projects coming out of the ground, people can see what this vision of an urban village looks like,'' Wren said.
`SLOW PROCESS'
Feldman was one of the first land owners to recognize the potential of the area, commonly referred to as Flagler Village and bounded by Broward Boulevard, Federal Highway to the east, and the Florida East Coast Railway tracks to the west and north. He had hoped to start construction in 2001.
''All of this is a slow process,'' he said. ``Redevelopment isn't easy.''
Even though Feldman now faces a lot more competition, he isn't worried.
Other developers share his faith. Perhaps that's best illustrated by Aventura-based Groupe Pacific's acquisition in November of 1.25 acres on the west side of the U.S. courthouse on Broward Boulevard. It wants to erect a 481-unit condo tower in the range of 30 stories. Groupe Pacific paid $10.5 million for the land, about three times previous sales prices in recent years.
''It is really a prime piece of property,'' said Alan David, vice president of Groupe Pacific. ``It's right in the heart of the downtown area.''
The price paid by Groupe Pacific is comparable to land sales south of Broward Boulevard, particularly along the New River, where residential developers have flocked in recent years. Among the buildings: the 42-story, 287-unit Las Olas River House and Minto Communities' 315-unit WaterGarden condo project.
Developers sapped the supply of units earmarked for south of Broward Boulevard and are on track to do the same for the northern side.
In November 2003, the city increased the supply of residential units that could be built in downtown by 3,000 -- with 2,197 allocated for the area north of Broward Boulevard. But a chart compiled by the city shows that 14 projects either already approved or in the approval process would consume all of the 2,197 units -- and then some.
The city and the DDA are proceeding with a land-use amendment to allow for the construction of 13,000 more downtown units. The request will go before the county's Planning Council next month, Wren said.
Of the 23 multifamily projects tracked by The Herald, only one, Flagler Point at 600 N. Andrews Ave., intends to incorporate units that the city would deem ''affordable.'' However, the project's developer hasn't priced any of the 169 rental units yet.
Nearly all of the remaining projects have units with starting prices of more than $200,000. The high end tops $700,000.
''I'm concerned about the pricing of the proposed development,'' said Carlton Moore, a Fort Lauderdale commissioner who has advocated affordable housing. ``I am not trying to harm developers. I am not trying to harm the tax base. We are a city of citizens, and our first obligation is for them to have the ability to reside within our city.''
Moore supports the creation of a law that would require a percentage of residential construction to be affordable.
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